Dividend Yield
What is it? The result of amount of dividends per share divided by a stocks current market price.For example, if a stocks current price is $40, and the company pays a $5.00 dividend per share per year, then the dividend yield is 12.5 percent (5/40 = 0.125, which equals 12.5%). Several popular investing strategies are based on stocks dividend yield. You can find a stocks dividend yield in most newspapers or by using Quotes Plus.Today, many companies opt not to pay dividends, preferring instead to reward investors through stock appreciation that results from plowing all earnings back into the company.Added By: Landon
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